The US bank First Citizens BancShares takes over large parts of the collapsed Silicon Valley Bank (SVB).
The acquisition includes buying about $72 billion of SVB’s assets at a $16.5 billion discount, the US deposit insurance fund, the FDIC, said. Assets consist primarily of deposits and loans. Other assets, primarily securities, will remain with the FDIC for the time being.
The 17 branches of the SVB are already scheduled to open under the new name today. The fund expects itself to lose about $20 billion from the transaction. The exact amount will be known when the administration of the bankruptcy has ended.
Bank quake continues
The FDIC had taken over the money house specializing in start-up financing after a failed emergency capital increase on March 10 and had already made an unsuccessful attempt to sell the institute.
The problems at some US regional institutes had also triggered a bank earthquake in Europe. The escalation led to an emergency sale by Credit Suisse to UBS. This was followed by another sell-off in European financial stocks last Friday. In addition to many top European politicians, US President Joe Biden also tried to ease the situation at the weekend.
First Citizens Bank buys collapsed Silicon Valley bank
The US deposit insurance FDIC has found a buyer for the bankrupt bank. Only the securities remain under FDIC control.
The loan book and deposits of the collapsed Silicon Valley Bank (SVB) in California are taken over by the First Citizens Bank & Trust. This was announced by the US deposit regulator FDIC on Monday. Other assets, primarily securities, remain under the control of the FDIC, it said. The 17 branches of the SVB, which specializes in financing young technology companies, are to open under a new name on Monday. Customers retained access to their bank accounts, the new owner assured.
The FDIC took over the SVB on March 10 and had already made an unsuccessful attempt to sell the institute. The day before the takeover, US crypto bank Silvergate Capital’s voluntary resolution had already sent shockwaves through parts of the financial sector. Other small financial institutions also stumbled, the Signature Bank collapsed completely.
Since then, the crisis has developed into a banking tremor that is putting pressure on the share prices of banks around the world. The escalation led to an emergency sale by Credit Suisse to UBS. This was followed by another sell-off in European financial stocks last Friday. In addition to many top European politicians, US President Joe Biden also tried to ease the situation at the weekend in view of the turbulence in the banking sector.
<p>The post First Citizens buys Silicon Valley Bank first appeared on NationalTurk.</p>
Source: NationalTurk
